A simple heuristic for ending up in better financial shape in the long-run

17 February 2015

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Never borrow money to purchase a car. 

(As with all heuristics, there are exceptions. For example, if you can get finance at rate that’s lower than the rate of inflation, or even what you’d get from a savings account. It’s likely to be better to invest your money elsewhere at a higher rate of return. So long, of course, as the loss that the dealer/financier/manufacturer is making on the finance isn’t baked into the price of the vehicle!) 


About the author 

Sonnie Bailey

Sonnie provides financial planning services via his business, Fairhaven Wealth (www.fairhavenwealth.co.nz). Fairhaven Wealth provides independent, advice-only, fixed-fee financial planning services. Sonnie is also a “recovering lawyer”: he has specialised in financial services, trusts, and estate planning.

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